B-255217.3,B-255217.4: Jul 6, 1994

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A firm protested a Defense Personnel Support Center (DPSC) contract award for polypropylene undershirts, contending that DPSC failed to hold discussions with it regarding its past performance. GAO held that: (1) DPSC was required to hold discussions with the protester before terminating its contract, since the solicitation contained a clause stating that bidders would have an opportunity to explain any unfavorable past performance; and (2) the protester was prejudiced by DPSC failure to hold discussions, since there was evidence that the protester could provide reasonable explanations for its past delivery delays. Accordingly, the protest was sustained and GAO recommended that DPSC: (1) hold discussions with the protester regarding its past performance, reevaluate its bid, and perform a new cost-technical tradeoff; (2) terminate the awardee's contract and make award to the protester if otherwise appropriate; and (3) reimburse the protester for its bid and protest preparation costs.